Acquisition of Expressions / Name Change / Future
Post# of 4998
(Total Views: 925)
Posted On: 05/27/2017 12:14:08 PM
Acquisition of Expressions / Name Change / Future Acquisitions.
In response to questions posed on iHub. In my opinion:
Expressions Chiropractic Acquisition.
Perhaps Dr Kirtland saw the benefits of Expressions becoming a public company with the increased exposure that would result through PRs on both the merger and improved financial results. That has already worked with an increased patient throughput reflected in increased revenue and profits.
If he also saw the opportunity for expansion in the $33 Billion Complementary and Alternative Medicine (CAM) sector locally but lacked the time in his clearly busy schedule to do the groundwork to seek out suitable new locations and / or acquisition candidates, DIGX might assist with that seeking out suitable locations or merger / acquisition candidates and securing financing by leveraging the cash in hand at the bank (2016 Annual results showed all profits held as cash at bank).
At the end of the day, it is immaterial why or how Expressions Chiropractic & Rehab became a subsidiary of DIGX. The outcome has been extremely profitable in terms of increased revenue and profits for 5 quarters now ever since with a clear indication of continued success and further improvement.
Name / ticker change.
I agree that "Dig It Under" is not a self-evidently suitable name for the overarching portfolio company.
It is of course a legacy name left over from before the current CEO took over in the successful post-Expressions acquisition era.
In the distant past (2001), the company was originally an underground cable contractor in NV. As a trader in the present / future, I'm not concerned about what happened in the period 2001>2015 - presumably there was a transfer of ownership of the company name / shell - immaterial now.
In any event, it is not a huge deal to get the name and ticker changed - about 6-8 weeks is required (example EVDR > CRTC) but probably isn't a high priority for the company at present, particularly since many savvy traders are familiar with $DIGX being a repeat winning runner every quarter for 5 quarters now - and for those with a longer memory or period of observation - exceptionally thin in the .0010 > .0030 and then .0030 > .01 ranges (2013 > 2015).
Expansion of both Expressions Chiropractic & Rehab & Split Endings brands.
The company has clearly stated - in both the 2016 Annual Report and more recent PRs and filings - that it intends to expand both brands (extract from filings to follow in another post).
Clearly even taking on one additional location is a large undertaking and will take as long as it takes.
In the meantime, the excellent financial performance of the current locations of both brands in the $DIGX portfolio is more than sufficient for me. Additional locations will be a welcome bonus - with a price surge - as and when it happens at some point down the line.
In response to questions posed on iHub. In my opinion:
Expressions Chiropractic Acquisition.
Perhaps Dr Kirtland saw the benefits of Expressions becoming a public company with the increased exposure that would result through PRs on both the merger and improved financial results. That has already worked with an increased patient throughput reflected in increased revenue and profits.
If he also saw the opportunity for expansion in the $33 Billion Complementary and Alternative Medicine (CAM) sector locally but lacked the time in his clearly busy schedule to do the groundwork to seek out suitable new locations and / or acquisition candidates, DIGX might assist with that seeking out suitable locations or merger / acquisition candidates and securing financing by leveraging the cash in hand at the bank (2016 Annual results showed all profits held as cash at bank).
At the end of the day, it is immaterial why or how Expressions Chiropractic & Rehab became a subsidiary of DIGX. The outcome has been extremely profitable in terms of increased revenue and profits for 5 quarters now ever since with a clear indication of continued success and further improvement.
Name / ticker change.
I agree that "Dig It Under" is not a self-evidently suitable name for the overarching portfolio company.
It is of course a legacy name left over from before the current CEO took over in the successful post-Expressions acquisition era.
In the distant past (2001), the company was originally an underground cable contractor in NV. As a trader in the present / future, I'm not concerned about what happened in the period 2001>2015 - presumably there was a transfer of ownership of the company name / shell - immaterial now.
In any event, it is not a huge deal to get the name and ticker changed - about 6-8 weeks is required (example EVDR > CRTC) but probably isn't a high priority for the company at present, particularly since many savvy traders are familiar with $DIGX being a repeat winning runner every quarter for 5 quarters now - and for those with a longer memory or period of observation - exceptionally thin in the .0010 > .0030 and then .0030 > .01 ranges (2013 > 2015).
Expansion of both Expressions Chiropractic & Rehab & Split Endings brands.
The company has clearly stated - in both the 2016 Annual Report and more recent PRs and filings - that it intends to expand both brands (extract from filings to follow in another post).
Clearly even taking on one additional location is a large undertaking and will take as long as it takes.
In the meantime, the excellent financial performance of the current locations of both brands in the $DIGX portfolio is more than sufficient for me. Additional locations will be a welcome bonus - with a price surge - as and when it happens at some point down the line.
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A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.